Survey: Economy needs time to recover

The best cure for the economy now is time.
That's the overwhelming opinion of leading economists in a new Associated Press survey. They say the Federal Reserve shouldn't bother trying to stimulate the economy — and could actually do damage if it did.
The economists are lowering their forecasts for job creation and economic growth for the ...

2 comments

Obama hasn’t failed. The fact is, this will take as much time to bail out of as the Depression of the 1930s. Traditionally, real estate leads the economy out of a recession.

That can’t happen now thanks to the recklessness of the previous administration’s policies which has ruined the housing economy for the balance of the decade.

The administration has tried both targeted and general stimulus- it got the banking system back on its feet and got 2 million workers their jobs back. It saved the US auto industry and hundreds of their suppliers. It brought interest rates down to zero and provided all of the liquidity it could. With the average American consumer still leveraged at over 130% of earnings, consumption will still be restrained.

There is little else left to try. But the ship is being righted, however slowly.

We had one bad month of job statistics and everyone is screaming for blood. Hopefully, the momentum will return as it did last year.